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Belgium’s on-trade spirits sales fall 50%
Trade body Spirits Europe has said the Belgian government’s decision to increase spirits excise tax by 41% is “clearly not generating the expected revenues” as on- and off-trade sales have plummeted.
Spirits Europe has hit out at the results of tax hike on alcoholic beverages
The body has hit out at the results of tax hike on alcoholic beverages, brought in on 1 November last year, which it says “reinforces discrimination against spirits”.
“The results of the tax increase are already visible,” said Spirits Europe in a statement. “A 16% decrease in sales in the retail sector, a 50% decrease in the on-trade and a 33% decrease in sales by producers. We can expect a negative impact in terms of investment and employment along the production and distribution chain. This is certainly not the outcome planned by the government.”
Tax on spirits in the country has increased by 71% since 2013. Compared to beer, tax for which has risen 17%, and wine, tax for which has increased 59% in the same period, the body says its “hard to understand such an unfair treatment”.
“A unit of alcohol is a unit of alcohol,” said Spirits Europe. “There is the same quantity of alcohol in a 250ml glass of beer as in a 100ml glass of wine or 30ml short of spirit – i.e. 10g of ethanol – so why such a discrimination?”
Between January and July 2016, the Belgian Exchequer expected an extra €128m in excise revenues – but just €40m was collected.
Spirits Europe’s figures state that due to a decrease in the volume of sales, the government is also registering a €66m decrease in VAT revenues – resulting in a net loss of €26m.
Additionally, the tax hike has failed to curb alcohol consumption – rather, consumers are instead buying booze from border countries. Spirits Europe estimates that one bottle of every four consumed in Belgium is purchased outside the country – data obtained from retail shops in border countries have revealed a 40% increase in spirits sales in Luxembourg, while sales in the North of France are said to have doubled in comparison to the rest of the country.
In Belgium, the body says, consumption of spirits represents less than 15%, but contributes to 40% of the excise revenues.